Opening an offshore holding company in 2021 - the main features
Opening an offshore holding company in 2021 is relevant for international business development. Entrepreneurs often open such companies to optimize taxation and protect their own assets and investments. To clarify more details about the registration of the business, contact our specialists at IT-OFFSHORE.
Peculiarities of the holding company
Before registering an offshore holding company in 2021 it is required to get acquainted with its main features. It is a structure that is established in a tax-exempt zone for legal entities. An offshore company is incorporated in a state outside the beneficiary's country of residence.
This type of firm is commonly used to deal with assets and subsidiaries. Usually the company receives passive income in the form of dividends, rent or royalties. This structure is used as an effective tool to reduce tax at source.
Often this type of business is opened as an IBC because benefits can be taken advantage of. This type of enterprise is not opened for the purpose of producing or selling goods, commercial work and trade. The structure is used for stock control.
Holdings are most often opened in countries that offer favorable conditions for non-residents - tax exemption and confidentiality, protection of beneficiary data, and protection of assets.
Popular types of structures:
- IBC - used as a tool for investment and international trade;
- LLC - used for protection of assets;
- Trust - used to determine succession.
An offshore entity allows for lower tax liabilities due to low tax rates. When operated correctly, fees can be reduced for dividends or royalties. It is permissible to use the structure as a means to divide assets.
Top countries for holding company registration
The conditions for holding companies vary from country to country. It is important to choose in advance where to open a company, consult with our experts as well as familiarize yourself with the tax regime and nuances of the regulatory framework.
This state has a favorable geographical location - the center of the EU. It offers a friendly environment for business development and has a stable economy. The most relevant form for the registration of a holding company in Luxembourg is SOPARFI. It is a resident company, which can get exemption from taxation due to the large number of contracts signed by the country.
Jurisdiction is attractive to foreign investors. It is advantageous to use a local company to create a holding company and active business. Company registration can be done remotely. The owner-foreigner is allowed. Most often a limited liability company is opened. Establishing a holding company makes it possible to own assets and receive dividends from all over the world.
Registration of a company in Malta of type IBC is relevant. The country is not blacklisted and is a member of the European Union. There is no currency control, and you can get citizenship by investment programs. There is an opportunity to optimize the tax treatment.
Many businesspeople choose a company in UAE to increase profitability of business, optimize tax burden and reduce financial risks. Holding is a tool of business optimization in the Emirates for successful management and consolidation of assets.